Los Cabos – June 19, 2012 – The Los Cabos G20 summit resulted in an important commitment by Europe to reform its troubled banking system. At the same time, the summit marked a useful movement away from a false debate about austerity versus growth, and toward a more useful global political conversation about balancing of prudence versus generosity.
These are the findings of G20 experts from The Centre for International Governance Innovation (CIGI) who attended the Los Cabos summit June 18-19, 2012. They present their views in new post-summit commentaries posted at CIGI's website, www.cigionline.org.
James Haley, Director of the Global Economy program at CIGI, notes that "the G20 Los Cabos Leaders Declaration and Los Cabos Growth and Jobs Action Plan have some encouraging elements for those concerned about the prospects for the global economy."
Most important, Haley writes, is the commitment by the euro area members to close the "yawning gap" between their capital market integration and the institutional arrangements required to support that integration. Haley also lauds commitments by the US to avoid sharp fiscal cuts that could hamper growth, and by China to let the markets play a larger role in its currency exchange rate.
Andrew F. Cooper, a CIGI Distinguished Fellow, states that "the image of the Los Cabos G20 being dominated by the debate over growth versus austerity is misleading in many ways."
Rather, Cooper writes, the real debate is over the calls for fiscal prudence – as seen in the positions of Germany and Canada, regarding financial support to European countries with a high standard of living – and the need for continued generosity to developing and deserving poor countries; and the Los Cabos summit may have helped shift this global political conversation.
Other CIGI experts will also weigh in with analyses of the Los Cabos summit over the next few days. Watch CIGI's website for these new commentaries.
To arrange interviews with James A. Haley, Andrew F. Cooper or other CIGI G20 experts, media are invited to contact Communications Specialist Declan Kelly at +1.519.885.2444, ext. 7356 or [email protected].
Declan Kelly, Communications Specialist, CIGI
Tel: 519.885.2444, ext. 356, Email: [email protected]
The Centre for International Governance Innovation (CIGI) is an independent, non-partisan think tank on international governance. Led by experienced practitioners and distinguished academics, CIGI supports research, forms networks, advances policy debate and generates ideas for multilateral governance improvements. Conducting an active agenda of research, events and publications, CIGI’s interdisciplinary work includes collaboration with policy, business and academic communities around the world. CIGI was founded in 2001 by Jim Balsillie, then co-CEO of Research In Motion (RIM), and collaborates with and gratefully acknowledges support from a number of strategic partners, in particular the Government of Canada and the Government of Ontario. For more information, please visit www.cigionline.org.